VinaLand Limited, the direct real estate investment arm of Vietnam’s asset management firm VinaCapital, has offloaded its entire stake in Phu Hoi City, a township project located in southern Dong Nai province, earning $15.8 million net proceeds.
The cash has been collected in full, the fund said, in an announcement on Wednesday.
VinaLand revealed the divestment of the project was worth a total valuation that is 2 per cent over the 30 September 2017 unaudited net asset value. In a separate report, the real estate vehicle said Phu Hoi City accounted for 9.7 per cent of its NAV, which was around $22 million out of $227.4 million.
VinaLand acquired the project, an 84-hectare parcel of land designed for a future residential-township, in 2007.
It is located approximately 27 km east of Ho Chi Minh City’s central business district and 15 km from the proposed Long Thanh International Airport. Site clearance and compensation have already been completed, the fund said.
VinaCapital has been working on a policy to divest from direct real estate holdings, disposing 34 assets under VinaLand prior to Phu Hoi City.
In the third quarter of 2017, VinaLand divested from two projects, My Gia Township and VinaSquare, following a string of disinvestments from residential and mixed use complexes during the year.
The divestments in 2017 generated a total net proceeds worth $153.3 million to the fund.
“Because of continued momentum in the local real estate market and improving foreign interest, market conditions and deal activity in the real estate sector continued to remain steady during the first nine months of 2017,” it said.